THE number of landlords selling up in Wales is more than double the UK average, according to a letting agent regulator.
In a report published by Propertymark, data suggested that about five landlords per letting agency had put their properties up for sale, compared to the UK average of two.
Wales also had the highest number of prospective tenants applying at letting agencies, with an average of 318 new applicants per branch in January. This figure was also more than double the UK average, which saw 118 tenants apply per branch.
The report is based on internet surveys completed by 143 letting agencies registered with PropertyMark.
The company says it represents nearly 10,000 members across the UK.
It’s thought that the high number of sales in Wales could be a result of landlords taking advantage of the sharp rise in Welsh house prices, as well as upcoming law changes that will make the process for evicting tenants slightly more difficult in Wales.
Figures from mortgage-provider Halifax in December suggested that house prices had risen more in Wales than in any other part of the UK, with prices increasing by an average of 14 percent.
Propertymark’s CEO Nathan Emerson said: “Our latest report shows an unprecedented spike in new applicants registering per member branch with a 140 per cent increase in January compared to December.
“Setting this figure beside the small increase in the average number of new properties entering the market in January, there seems to be nowhere near enough private rented homes available.
“Wales is seeing the greatest number of landlords exiting the sector and interestingly, this could come as no surprise to many agents and landlords.
“With several changes on the horizon from the implementation of the Renting Homes (Wales) Act, landlords in Wales will be faced with further regulatory pressure.
Coupled with the extremely high demand within the sales market in areas across Wales, these could well be contributing to the number of landlords exiting the sector.”
For some, however, the exit of landlords from the housing sector will come as good news.
Writing for The National recently, Labour MS Carolyn Thomas said that landlordism in Wales should be discouraged.
“The rapid and unsustainable growth of a class of buy-to-let landlords since the 1980s has undone much of the progress in the conditions of tenants, as well as driving an explosion in house prices.
“The increase in house prices then translates into higher rents.
“People who, forty years ago, would have either bought a home or lived in a secure and affordable council house, are forced into a private sector that works for profiteers, not ordinary people.”
Arguing in favour of capping rent prices, Ms Thomas said the move would “reduce the number of landlords looking to buy houses to let, increasing the number who are looking to sell.”
“This will in turn deflate the housing market, allowing former tenants to buy their own homes,” she added, noting that social housebuilding would need to increase.
Welsh language society Cymdeithas yr Iaith held a protest last weekend calling for similar measures.
A march was held at Pont Trefechan, the site of the group’s iconic first protest in 1963, to highlight how the housing crisis was threatening the survival of Welsh-speaking communities.
- This article originally appeared on our sister site The National.
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